Indonesia's Panda Bond issuance remains on track for early July

The initial target may be US$1 billion, but we will see what the market looks like.

Jakarta (ANTARA) - The Finance Ministry confirmed that Indonesia’s planned issuance of Panda Bonds remains on schedule, with the launch targeted for late June or early July 2026.

Herman Saheruddin, the ministry’s Acting Director General of Financial Sector Stability and Development, stated here on Thursday (June 25) that the licensing process is currently underway and progressing smoothly.

"(The Panda Bond issuance) is on schedule. We met yesterday, because the permits must also be submitted to the PBOC, (People's Bank of China)" Herman said.

The planned issuance follows a strategic diplomatic push in Beijing last week by Finance Minister Purbaya Yudhi Sadewa.

During his official visit from June 16-19, 2026, Minister Purbaya secured direct support from PBOC Governor Pan Gongsheng to fast-track the necessary regulatory approvals.

Herman noted that the Chinese central bank has welcomed the issuance plan and expressed readiness to accelerate the process, though several standard administrative phases must still be completed by the appointed underwriters.

Panda Bonds are yuan-denominated debt securities issued by foreign governments or entities in mainland China’s domestic bond market.

Jakarta is utilizing this financial instrument as part of a broader strategy to diversify its international financing sources and shield the Indonesian rupiah from global market volatility.

While the initial issuance target is US$1 billion, Minister Purbaya indicated that the government is prepared to increase the offering if investor demand proves strong.

“The initial target may be US$1 billion, but we will see what the market looks like. If market demand is stronger, we will increase the issuance, depending on market conditions,” Purbaya said.

He added that the PBOC is currently awaiting the final documentation from the project's underwriters before granting regulatory approval.

“During our meeting with the PBOC, we were asked to expedite the submission of the required permit documents. The underwriters have not yet submitted them, so the PBOC requested that they do so immediately to allow the process to move forward without delay. Their support for this plan has been very positive,” Purbaya concluded.

Related news: Indonesia targets US$1 billion Panda Bond issuance: minister

Translator: Bayu Saputra, Yashinta Difa

Editor: M Razi Rahman

Copyright © ANTARA 2026